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Bart Nemegheer (De Aardappelhoeve)

"Despite high potato prices, demand for seasonal stock remains strong"

The potato market is somewhat quieter at the moment, but it remains an unusual situation, says Bart Nemegheer of De Aardappelhoeve. "Sales have been good so far, but January is always a bit slower, especially in the second half. We hear the same from colleagues, though things usually pick up again in February. The market is still quite unusual because, in the short term, we are seeing strong price increases, particularly for industrial and French fry potatoes. However, the fresh market and processing industry are also following this trend."

According to the grower and trader, the reason for this is that various countries slightly overestimated their harvests. "Shortly after the initial sales, problems surfaced in quite a few batches," Bart explains. "At first, this had an impact on the market as the industry processed those batches quickly. However, this phase has now passed, and it has become clear that overall yields were lower than initially estimated across the board. In Belgium, the Netherlands, and Germany, harvests were overestimated, and we can now see how quickly prices can soar as a result."

"I expect this trend to continue for some time," he continues. "On Friday, price quotations were already approaching €300 per tonne, and we're hearing that buyers are already paying more than the Belgapom quotations for good batches of free potatoes. This won't change anytime soon. In the past, price increases happened in small increments, but now we're seeing jumps of five cents at a time, indicating a highly active market."

Securing supply
Demand remains strong, despite the very high prices. "Everyone is trying to secure the available free potatoes, especially as we approach the end of the season. No one knows how the season will develop—will we have a dry spring, or will it be like last year, with excessive rainfall and delayed planting? At some point, this market activity will slow, but for now, we've had excessive rainfall for a year and a half. That could push prices even higher towards the season's end. That's why buyers are willing to pay high prices now, to secure their supply and avoid being exposed to the free market later in the season. Last year, prices surged to €650 per tonne in the final months, and no one wants to find themselves needing potatoes at that point."

Fresh potato sales stagnating
While Bart observed a clear upward trend in fresh potato retail sales last year, that momentum has slowed again this season. "The real growth is in processed potato products. Fresh potatoes remain a challenge because young people don't want to peel them anymore. It's striking because there is so much focus on sustainability and health, and potatoes align perfectly with both. They're locally grown, nutritious, and sustainable, so they should be highly valued. Yet, young consumers are turning away from them in favor of convenience. Potatoes are still the primary side dish in many meals, but it's becoming harder to maintain that position. Consumer habits are evolving, and it's up to us to find ways to keep potatoes relevant."

New baking potatoes from The Potato Chef
For De Aardappelhoeve, one way to tackle this challenge is through their brand, The Potato Chef, which offers various (sweet) potato preparations. "We are constantly looking at new product developments. In Germany, for example, per capita potato consumption is still double that of Belgium, exceeding 40 kilos per person. So, we investigated why potatoes remain so popular there. When you visit roadside restaurants in Germany, you'll still find French fries, but the main staple is 'Bratkartoffeln'—pan-fried potatoes. That inspired us to develop a ready-to-cook baked potato variant that is easy to prepare. We also added onion and garlic, similar to the German style. Since launching, this product has been performing extremely well. Consumers want an easy, seasoned option that's ready to fry, and the response has been excellent. We'll also be showcasing it at Fruit Logistica to see which international markets might be interested."

Struggling to place onions
In addition to potatoes, De Aardappelhoeve is also active in the onion market. "This year, it has been more challenging. Yields were lower because planting was delayed across the board. On top of that, heavy rainfall led to quality issues. Fortunately, we have excellent drying systems, which allow us to dry and store our onions properly, but overall, the market is struggling. Due to these quality challenges, prices haven't really taken off, and there is still some difficulty in placing all batches. That said, we are very satisfied with the quality of our onions, and they are finding their way into Belgian retail.

We also supply shallots, but there is a significant shortage. France harvested less due to the rain, particularly in the Loire region, where many batches remained unharvested in the fields. As a result, shallot prices are currently very high."

The Potato Farm can also be found at the upcoming Fruit Logistica: Hall 27, Stand B-44

For more information:
Bart Nemegheer
De Aardappelhoeve
Putterijstraat 7A
8700 Tielt (Belgium)
Tel: +32 (0)477 29 17 84
[email protected]
www.deaardappelhoeve.be